First-Time Home Buyer Programs in Florida

Florida's statewide homebuyer programs come from the Florida Housing Finance Corporation, usually called Florida Housing. It offers first mortgage loans for first-time buyers along with down payment and closing cost help, and you reach all of it through an approved participating lender rather than through the agency itself. Eligibility and terms depend on you, the property and the program, so the agency and a participating lender are the places to confirm the details.

What Florida Housing is

Florida Housing is the state's housing finance agency. Its job is to help make housing more affordable for Florida residents, and part of that work is a set of homeownership programs aimed mainly at first-time buyers who meet income and purchase guidelines.

The agency does not take loan applications from the public. Instead, it works through a network of approved lenders, sometimes called Program Lenders, who originate the loans, and through real estate agents who have learned how the programs work. Florida Housing publishes a Lender and Real Estate Agent Locator so you can find professionals near you who take part.

One practical point stands out on the agency's pages: there is no cost to apply for its assistance, and it warns buyers to be wary of anyone who asks for an upfront fee to get them into a program.

Florida Housing homebuyer programs by name

Florida Housing describes its homebuyer programs as a first mortgage paired, in many cases, with a second mortgage that helps with the down payment and closing costs. The programs it lists include:

• Homebuyer Loan Program. Fixed-rate first mortgage loans for first-time homebuyers, offered through participating lenders.
• Florida Assist (FL Assist). Down payment and closing cost help structured as a deferred second mortgage.
• Florida Homeownership Loan Program (FL HLP) Second Mortgage. Down payment and closing cost help structured as a second mortgage that you repay with a monthly payment.
• HFA Preferred and HFA Advantage PLUS Second Mortgage. Down payment and closing cost help structured as a second mortgage that is forgiven over its term, available only with specific conventional first mortgages.
• Florida Hometown Heroes Housing Program. Down payment and closing cost help for first-time, income-qualified buyers in workforce occupations, such as health care, education, first responders and public safety, court employees, child care, servicemembers and veterans, who work full time for a Florida-based employer. The goal is to help them buy a primary residence in the community where they work and serve.
• Mortgage Credit Certificate (MCC). Listed by Florida Housing among its homebuyer options. A mortgage credit certificate is generally tied to federal income taxes, so talk to a tax professional about how it could apply to you.
• Homeownership Pool (HOP) Program. Also listed among the agency's homebuyer programs.

Two structural points matter when you compare these options. First, Florida Housing's assistance is available only with a Florida Housing first mortgage; it is not offered as standalone help on top of an outside loan. Second, the second mortgages work differently from one another. Some are deferred, some carry a monthly payment, and some are forgiven over time, and deferred assistance generally becomes due if you sell, refinance, transfer the deed or stop living in the home. Ask your lender to explain exactly how any second mortgage you are offered works.

Programs vary by borrower, property and investor. Income limits, purchase price limits, credit guidelines and available funding can all change, so check eligibility and current terms with Florida Housing and a participating lender before you count on any program.

Homebuyer education in Florida

Florida Housing's homebuyer overview states that buyers must complete approved homebuyer education. Your participating lender can tell you which courses are accepted for the program you are using and when the certificate needs to be in your file.

Even if a course were optional, it is worth the time. HUD-approved housing counseling agencies offer free or low-cost help with budgeting, working out how much home you can afford, understanding the mortgage process and knowing what to expect at closing. A counselor can also help you compare loan types and choose a lender. You can find an approved agency through HUD's housing counseling locator.

How to work with a participating lender

The lender is your entry point to every Florida Housing program. A practical way to approach it:

1. Find lenders that participate. Use Florida Housing's Lender and Real Estate Agent Locator. Not every lender offers state programs, and among those that do, not every loan officer works with them often.
2. Ask direct questions. Which Florida Housing programs do you offer? Which first mortgage types can be paired with which assistance? What education course do you accept? How long does the agency's review usually add to the process?
3. Compare the full picture. Ask each lender for a Loan Estimate so you can compare the first mortgage, any second mortgage, and the cash you would need at closing side by side.
4. Keep your occupancy plans clear. These programs are for a primary residence. Make sure you understand what happens to any assistance if you later sell, refinance or move out.

Approval is subject to credit approval and program guidelines. A participating lender can tell you whether you may qualify, but no lender can promise eligibility before reviewing your full application.

Florida closing items to know about

Florida has a few state-specific taxes and property tax rules that show up around closing. Your lender's Loan Estimate and Closing Disclosure will list the actual charges.

Documentary stamp tax

Florida's documentary stamp tax is an excise tax on certain documents. It applies to deeds and other documents that transfer an interest in Florida real property, and it also applies to written obligations to pay money, such as promissory notes and recorded mortgages. When the document is recorded, the county clerk of court or other recording official normally collects it.

Nonrecurring intangible tax on mortgages

Florida also has a nonrecurring intangible tax on mortgages, which is collected when the mortgage is recorded with the county. Who pays each closing tax is often a matter of the purchase contract and local custom, so ask your real estate agent and closing agent how it will be handled in your transaction.

Homestead exemption, Save Our Homes and portability

Once you own the home, check on the Florida homestead exemption. It applies to property that the owner makes a permanent residence (or the permanent residence of a dependent) and reduces the property's taxable value. You apply through the property appraiser in the county where the home is located, and that office decides whether your parcel qualifies.

A homestead exemption also qualifies the home for the Save Our Homes assessment limitation. If you have owned a Florida homestead before, you may be able to transfer, or port, all or part of the Save Our Homes assessment difference to a new Florida homestead. The Florida Department of Revenue publishes guides on the homestead exemption, Save Our Homes and portability, and one written for first-time homebuyers. Filing windows and documentation rules apply, so check with your county property appraiser, and talk to a tax professional about how these rules affect you.

Florida first-time buyer checklist

• Read Florida Housing's homebuyer program pages and note which programs fit your situation.
• If you work in health care, education, public safety, child care or the military, or you are a veteran, look at the Hometown Heroes program.
• Use the Lender and Real Estate Agent Locator to find a participating lender and an agent who knows the programs.
• Complete approved homebuyer education and keep your certificate.
• Gather income, asset and employment documents for your lender.
• Ask how any second mortgage works: deferred, repayable or forgivable, and when it becomes due.
• Compare Loan Estimates, including documentary stamp tax and other recording charges.
• After closing, apply for the homestead exemption with your county property appraiser.

Frequently asked questions

Next steps

• First-Time Home Buyer Loans
• Florida mortgage overview
• First-time buyer loans in Florida
• First-time buyer loans in Miami
• First-time buyer loans in Tampa
• First-time buyer loans in Orlando
• First-time buyer loans in Jacksonville
• First-time buyer loans in Sarasota
• First-time buyer loans in Cape Coral
• First-time buyer loans in Palm Bay
• First-time buyer loans in Port St. Lucie
• First-time buyer loans in Bonita Springs
• First-time buyer loans in Palm Coast
• First-time buyer loans in Kissimmee
• First-time buyer loans in Pensacola

Sources

• Florida Housing: Homebuyer Programs Overview
• Florida Housing: Hometown Heroes Program
• Florida Department of Revenue: Documentary Stamp Tax
• Florida Department of Revenue: Property Tax Exemptions
• HUD: Housing Counseling and You (First-Time Homebuyers)